DS News - U.S. Bank

32 QUICKEN LOANS, HUD SETTLE LAWSUIT Judge Gerald E. Rosen announced that Quicken Loans and the United States and the Department of Housing and Urban Development (HUD) had reached an agreement in the case of United States v. Quicken Loans Inc., stating that Judge Mark A. Goldsmith had entered an order dismissing the lawsuit. e case originated in 2015, when the U.S. Department of Justice filed a lawsuit claiming that Quicken Loans had originated hundreds of FHA-backed loans between September 2007 and December 2011 that were not eligible for the program because of Quicken Loans' lenders allegedly overstating borrowers' income so they could qualify for the loans, Crain's Detroit Business reports. "is resolution is in the interests not only of the parties but of the homebuying public," Rosen said in a statement. "All parties fully understand the important role the FHA program plays in helping middle- class Americans access home financing, and this resolution allows the parties to move ahead together with that mission and to ensure their future relationship. I commend the parties for investing the time and effort through this mediation, which will help support the continuation and the strengthening of the partnership between Quicken Loans and HUD in jointly serving American homeowners." "Today, HUD reached an important resolution with Quicken Loans so that, together, we may continue offering safe and sustainable mortgage financing to qualified, creditworthy borrowers," said Amy ompson, Assistant Secretary for Public Affairs, HUD. "FHA relies on its partnerships with lenders, such as Quicken Loans, to advance home buying opportunities for Americans, and we look forward to continuing our relationship with Quicken Loans." "We have always been proud of our growing participation in the FHA program. Everyday teachers, police officers, factory workers, and so many others who are the backbone of our communities utilize Quicken Loans for this very important loan program," said Jay Farner, CEO, Quicken Loans. "Now that this dispute is behind us, we look forward to cultivating and expanding our relationship with both FHA and HUD, so we can increase Americans' access to home financing and homeownership." CHECKING FANNIE MAE'S ECONOMIC FORECAST Fannie Mae's Economic and Strategic Research Group (ESR) predicts full-year 2019 and 2020 U.S. economic growth of 1.5%, down from its previous prediction of 2.1%. e government-sponsored enterprise (GSE) cites expected weakness in business fixed investment and softening global economic conditions for the decline. However, it expects the growth in housing to remain unchanged from its previous projection of a 1% year-over-year increase in home sales. "Escalating trade tensions and concerns about weakening global growth led us to lower our full-year 2019 and 2020 forecasts of real GDP growth to 2.1% and 1.5%, respectively," said Doug Duncan, SVP and Chief Economist at Fannie Mae. "Despite a strong start to the year, we expect growth to slow as macro-level uncertainty disincentivizes business fixed investment and starts to weigh on consumer spending. In order to sustain the longest expansion in more than 70 years, we expect the Fed to once again begin easing monetary policy and cut its interest rate target by 25 basis points in September." Fannie Mae's (ESR) projects that the Federal Reserve will cut the federal funds rate by 25 basis points at the September meeting of its Federal Open Market Committee to fend off a more significant deceleration in domestic growth. It notes that prices may rise as international trade tensions escalate, which may also impact the job market. Earlier this year, the Federal Reserve announced that it would be keeping the federal funds rate at 2.25 to 2.50%. e Fed statement announced that the Board of Governors of the Federal Reserve System voted unanimously to set the interest rate paid on required and excess reserve balances at 2.35%. "We expect housing to add to growth for the foreseeable future, and our projection of a 1% year-over-year increase in home sales in 2019 remains unchanged," Duncan continued. "Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market."

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